Wipam to compete with Vanchip in power amplifier in China
Korean firm expects sales in 2nd half
Vanchip has began preparations to list on the Shanghai STAR Market.
The company was founded by ex-RFMD (now called Qorvo) employees in 2010. Vanchip was embroiled in a legal battle with RFMD over technology leak but agreed to pay US$58 million to the US company to settle the dispute.
Taiwan’s Mediatek bought a stake in Vanchip; this is believed to be the catalyst that made Wipam open a Chinese office last year, people familiar with the matter said.
A Wipam spokesperson said the company expects sales from China to materialize beginning in the second half of 2021.
Wipam is expected to post an operating loss of 3.2 billion won and sales of 37.8 billion won for the full-year of 2020, according NH Investment & Securities. This will be a 70% decline sales compared to 2019, when it posted 125.4 billion won in sales and 12 billion won in operating income.
The Wipam spokesperson said the decline in profits and sales were caused by delays and drops of customers in the second half of 2020. The company relies on Samsung Electronics’ mobile business for sales. In 2019, Samsung accounted for 99% of the company’s sales.
Wipam is attempting to replace China’s StrongPower. StrongPower has been supplying power amplifiers of Mediatek’s subsidiary Airoha to Chinese smartphone makers. But Mediatek’s investment into Vanchip has caused StrongPower to lose the order.
Mediatek is attempting to focus on Vanchip to service power amplifiers to China. The company bought a 40% stake in Vanchip with US$40 million back in 2019.
In 4G power amplifiers market in China, Skyworks and Qorvo each owns around 40% market share. Airoha and Vanchip together own some 10%. The Wipam spokesperson said its competitor in China will not be local companies but US companies.
Samsung Mobile uses power amplifiers of Skyworks, Qorvo and Broadcom in its flagship smartphones.
NH Invesment & Securities expects sales of 174 billion won and operating income of 19.9 billion won for Wipam for the entire year of 2021. This will be thanks to expanded shipment of mid-tier and 5G smartphones this year.